>> good morning to you. i am ainsley earhardt. >> i am patti ann browne. thank you for watching "fox & friends first". >> time for the 5@5:00. with the election in the rearview mirror president obama will have to address the looming fiscal cliff before it is too late. he will talk about his plan to avoid the economic crisis. if congress fails to reach a deal on handful of issues by the end of the year. those issues include tax breaks set to expire and 800 billion in sequestration cuts. they want those owning 250,000 a year to pay more in taxes.

house speaker john boehner says tax cuts are unacceptable. >> i remain optimistic we will be able to find common ground, find a way to work together. the leblgs is over. we have to get to work. the congressional budgity office issuing a warning. if a compromise is not reached by the end of the year the economy could slip back into a recession. law americas might not get the answers they are looking for after all about the deadly benghazi terror attacks. congressional hearings will be closed to the public. fox news learned some of the suspects in the attack were part of an egyptian terrorist group. the network made up of violent extremists is trying to develop ties with al qaeda. >> jared laughner will be spending the rest of his life behind bars. he killed 6 people and wounded

15 others including debbie gifford. he sentenced him to 7 consecutive life terms plus 140 years. gifford and her husband were in court. you may have put a bullet in her head but you have not put a dent in her spirit. >> outrage about the power outages. 60,000 people still in the dark in new york and in new jersey. that does not include the half a million people still without power from sandy. >> i am very stressed out. i don't know what day it is, what time it is. trying to feed my daughter. >> no crews nobody around. no response. you call up you don't get any answers. it is ridiculous. this with the gas shortage. in new jersey they are rationing gasoline. starting today drivers with license plate numbers ending in an odd number or a letter will be able to fill up then on

saturday those with even numbers can. 43 billion making it the most expensive storms ever. united airlines flight originating in denver as a passenger refused to listen to a flight attendant and started yelling and praying in the aisle. the man refused to take a seat. the military escorted the flight to dulles international airport which was the scheduled destination. >> iran making news with a drone over the gulf. >> it happened days before the election. why didn't this news come out until now? peter doocy joins us live with more on this. >> it was about this time of day last thursday when two iranian su 25 fighter jets intercepted and for the first time ever

fired twice at an unmanned unarmed u.s. predator drone. these jets were 0 for 2 at both shots missed and the iranian jets kept following this drone after they fouled their shots. our drone was able to land at an undisclosed location shortly afterwards. >> our aircraft was never in iranian airspace. it was always flying in international airspace. the international territorial limits is 12 knot miles off the coast and we never entered the limit. >> so the u.s. state department has protested with protective powers in tehran since the 1979 embassy takeover. just because diplomats are protesting does not think the incident was an act of war.

>> the white house has motherly feelings because of the leblgs. >> i think i have said this at least two, three, four, five times now. we don't typically comment on classified surveillance missions. i am not going to get into discussions at a classified level that occurred between this department and the white house. they were informed early on. >> that's right. if you were wondering why this happened 8 days ago but we didn't learn about it until two-days after the presidential election that's because the pentagon spokesman george little just said the drone's mission was classified. back to you in new york. peter doocy, live in washington, thank you. >> this disclosure by the obama administration after the election is what charles krauthammer is talking about this morning. he was giving his take on special report last night. this is an attempt to hide the information until after the election he says. >> let's start with the timing.

remember the administration so-called politicizing foreign affairs over benghazi. we have an incident that occurs we have an election five days later we hear nothing about it until two-days after the election. we spent $60 billion a year. they didn't hide it until after the election. second is the response. that is an act of war. as a serious act of war we are the protectors and defenders in the shipping of the move. what is our response? we are going to continue as

little. we let them know to continue on the flight. how about you shouldn't be doing this this is untolerable. while the president is set to address it today the former director of the congressional budget office says that the situation is much more dire than being discussed. i say they are underestimating the impact. this is a big hit we don't have as much time as that. we have to get the tax law figured out so we can get the forms in. i think we are in trouble. number won the alternative middle class will mitt the middle lass. 30 million americans pay the high end tax. >> i hate that. what a pernisious tax that should never have been allowed. >> the so-called bush tax cuts everybody is getting hit with much higher taxes.

new things in the affordable care act. >> you like your free healthcare? those tax increases are going to lead to more tax cuts. >> it is done. no one sees a way to get out of those. >> yesterday the dow took another nose-dive dropping to the lowest level since july. this with a fiscal cliff and bailout plan. there's bad news for two of america's largest companies. those are some of the stories you can bank on this morning. lauren simonetti from fox business network joins us now. >> good morning. >> hi there. >> boeing announcing major job cuts in the defense division. >> boeing is cutting more jobs and closing more facilities to save 1 and a half billion dollars over the next three years. these changes come on top of a cost cutting plan that has already been in place for the last two years. they do a good chunk of business from the defense department.

the new changes are not addressed to budget cuts set to take part at the start of the year they are a response to lower defense spending here in the u.s. that spending will go even lower. the military is prepping for $55 billion in automatic cuts known as sequestration set for january. >> good news now. home prices hitting a high. >> the trend is our friend here. a report out in the early of the week confirming the housing market. unemployment rose 5 percent in september compared to last september. that is the biggest annual gain in 6 years. rising prices are good because they encourage folks selling their homes to sell them and put them on the market and buyers to purchase them. we should buy now before prices go even higher. >> mcdonalds reporting the lowest earnings since 2003. >> golden arches not looking very golden. the global sales fell. but that was the first monthly

decline in nearly a decade. the slowing economy here in the u.s. as well as in europe that's where mickey d's does 40 percent of the business is taking a toll. even in mcdonalds it typically thrives in these tough economic times because the menu is a inexpensive and they change it up a lot because people like it and even they are taking a hit. >> lauren simonetti thanks so much. thanks patti ann. it's time to get our weather update with janice dean. are we seeing any more winter weather? >> the northeast gets a period of dry weather and warmer temperatures. but the west it's their turn they are going to see wintery weather. let's talk about the last storm system finally exiting the coast we are dealing with dry conditions and a warming trend. however across the west we have winter weather advisory for many states including blizzard warnings for the state of montana. we could see over a foot of snow

heavy snow gusts 40-50 miles an hour. travel going to be next to impossible across the northern rockies the northern plains states. look at all of these winter weather advisories through saturday. let's take a look at your temperatures. it's cold still across the northeast. we are going to warm up 50s in new york, 57 chicago. 72 kansas city. the middle of the country tranquil. that's the good news. the west will deal with this storm system that will push into the central plains. look at the travel forecast looking good for most of the big cities today. glad to deliver a little bit of good news across the east. the west we are going to watch you this weekend. >> you need a break this weekend. you deserve it. >> thank you. >> thanks for the report. >> the time right now 11 after the hour. president obama will be spending four more years in the white house. some key members of his administration may not. let the cabinet shuffle begin. >> three-days removed from the

2012 race marco rubio is already talking about a return to the campaign trail. we will explain. [ timers ringing ] [ male announcer ] it's that time of year. time for campbell's green bean casserole. you'll find the recipe at campbellskitchen.com. ♪ campbell's. it's amazing what soup can do.

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>> quarter past the hour. nestle is recalling some of the nesquik chocolate powder mix because of a possible salmonella contamination. the affected sizes are 10.9, 21.8 and 20.7 ounce containers. no reports of any one getting sick. marco rubio already the republican frontrunner for president in 2016. he's attending a fundraiser birthday party for the governor. the annual event usually features all of the top republicans and rubio will be the headliner. >> president obama is sticking around for four more years but will his entire tab net do the

same? some members already said they are ready to move on. shannon tells us who is in and who is out. >> well, ainsley, patti ann serving in a presidential cabinet is not an easy job. wait to see who sticks around for round 2. >> something i am in the process of trying to determine. >> as attorney general eric holder pates waits to determine with whether he will serve a second term it is clear the challenges he is facing could be held in contempt of congress are likely factoring in to the decision. >> do i have some gas left in the tank? it has been an interesting and tough four years. i really don't know. >> other key members of the president's cabinet already signalled they won't be around for a full 8 years including secretary of state hillary clinton. she does not intend to stay sparking speculation about who her successor may be. but her public role in controversial statements in the

benghazi attack that left four americans dead could make a potential confirmation process in the senate a very rocky one. it is no secret senator john kerry head of the committee will be interested in the job. his open senate seat would anot massachusetts with democrats holding a solid majority in the senate it is something the white house would be open to explore. >> the president is willing to enter the responsibility of losing a senate seat if he wants john kerry badly enough. >> treasury secretary timothy geithner has expressed his desire to return to private life. with tax cuts set to expire the departure is likely to be delayed. >> people like secretary geithner have put a lot of energy into the issue related to the fiscal cliff. they are going to want to see it through. >> the same is true of defense secretary leon pineda who found

cuts that could be devastating to the pentagon. a spokesman shut down talk of pineda's departure. >> he has spoken clearly on his job today he focused on mission of department of defense and not focused on his personal future. >> stooe enpat who worked in white house administrations after four years cabinet members like to go to their soccer games have some what of a normal schedule where there usually is lucrative offers waiting for them. 18 after the hour. still to come doctors are supposed to help them lose weight. turns out most doctors would rather not treat over weight patients. anna kooiman explains in this week's fox health fix coming up. a massive manhunt. police are looking for a robber using an ak-47 after he strikes again.

>> quick headlines for you at this hour. the school getting an f grade in money management. they got 300 million in order to pay their bills. it will go to teacher's sal aris buying books and classrooms. it is not enough to keep all the schools open. 40 of them will be shutting down. bradley manning trying to get a plea deal. manning told the judge he would plead guilty to to leaking documents but he is not ready to plea glelty to more serious espionage charges.

we have a roundup of the top medical stories. >> trauma experts look at the emotional impact of tropical storm sandy. it causes flash backs ang gliet and can weaken the immune system. regaining a sense of control is key to overcoming the condition. when it comes to watching your cholesterol doctors say don't put it off. research says teens and young adults need to monitor their levels stind of waiting until it can be more difficult to control. screening for high cholesterol under 35 is controversial but it is essential. a new study out this week is the first of its kind to show a solid anti fat bias on the part of the medical community.

it was accumulateed by university of virginia and washington. they have a preference for thin people rather than fat people. they are unsure how much it effects clinical behavior if at all. experts say it is important for doctors to be aware of this so personal bias doesn't have a negative impact on dr. patient relationship. for more of the latest health news visit fox news health.com. >> the time right now 24 after the hour. next the state department is finally letting lawmakers see key documents in the libya terror attacks. there is a problem. it is only allowing it on days most lawmakers are out of town. >> another bush family for poli office. >> on this day in history 1967 the first issue of rolling stones was published.

look who is on the cover? john lennon. [ male announcer ] when a major hospital wanted to provide better employee benefits while balancing the company's bottom line, their very first word was... [ to the tune of "lullaby and good night" ] ♪ af-lac ♪ aflac [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. [ yawning sound ]

>> welcome back to "fox & friends first". >> it is 28 after the hour. now for the 5@5:30.

the top five streers making news at this hour. iran fired at a u.s. drone last week over the persian gulf. it was conducting routine surveillance in international airspace when iran airplanes fired on at least -- fired on it at least twice. the drone was not hit. it is the first time iran has ever fired at an american drone. no word of why we are just learning about the attack. >> no word on whether secretary of state hillary clinton will go before congress on the attack that went after chris stevens. their hearings will be closed to the public. the state department is making cables detailing what happened the night of the attack available to some law americas

ahead of the hearings. most of the law americas are out of town at the time. they feeled have to review the documents instead. >> the fbi believes this is an ak-47 bandit. he struck again this time in idaho. he used an assault rifle and forced the employees into the vault and made out with the cash. he is accused of robbing several banks in florida and washington earlier in the year. >> an officer is shot and injured in the robberies. a 70,000 reward is offered for any information lead to go his rays. >> we might soon see another member of the bush family in political office. reports say george p. bush filed the paperwork required to run for state office in texas. it's not clear what office he plans to run for. he is the nephew of former president george w. bush and son of explore dau governor jeb bush. >> scientists believe they found a super earth the planet is part

of a system with 6 planets a orbit a star just like our solar system. astronomers belief the planet is water and 7 times larger than our planet earth. future high-tech telescopes will likely be able to see it. those are your stories for 5@5:30. . obama will speak today about the most important issue looming the fiscal cliff. >> doug luzader has more on the economic crisis. >> good morning. it is a looming crisis. the congressional budget warns if we reach the fiscal cliff at the end of the year that combination of tax hikes and spending cuts. it could begin to shrink. obviously that's not good news for any one. the president will emerge for the first real comments since the election. he will no doubt talk about congress and the looming fiscal cliff with the combination of tax hikes and spending cuts. the president's former chief

economic advisor paints a pretty grim picture. >> the election is over. go look at the report. it shows if you go off the fiscal cliff the economy goes into recession if at the beginn of 2013 s. it is not a small matter. i think we have to address it. >> it will all come down to these two men. the president expected to draw a line in the sand insisting on a massive tax hike for wealthy americans and republican house speaker john boehner open to raising taxes but in other ways. he told abc news tax rates should remain where they are. >> raising taxes on small business people is the wrong prescription given where our economy is. >> is it on the table to talk about? >> raising tax rates is unacceptable and frankly it couldn't pass the house. putting increased revenues on the table but through reforming our tax code. i would do that if the president

were serious about solving our spending problem and twieing -- trying to secure our entitlement programs. >> most economists agree you have to do something about the big entitlement programs medicare, medicaid social security. is there a political willingness to do that to strike some kind of a grand bargain? that could take months or maybe even years and congress has little more than 50 days before we hit that fiscal cliff. back to you guys. >> not much time. thanks so much, doug. that impending fiscal cliff is what rush limbaugh is talking about. there are implications if it did go over the edge. look at california. >> california is where we are -- california is almost a microcosm to where the country is headed.

virtually they are volume canized out there. there is a bunch of different states. the rich live in a few places and the rest of the state is dying. it's a shame, actually. new york times editorial. message to sacramento, tax but don't over spend. you see folks in return for backing proposition 30 voters expect an end to the fiscal shenanigans that sent the state careens from one budget crisis to another. california has a 600 billion state debt. a projected $16 billion deficit. lack what happened? you voted tax increases on yourself and the problem solved. just to give you an idea how much tax california has already paid the national average rate for state and local taxes is 9.8 percent. in california it's 11.8 percent. another big talker this morning

the news that iran fired on the u.s. drone over the persian gulf last week, the timing being released raising questions about whether the administration purposely held it until after the election? michelle mal pin saws it's another example of lack of transparency for the obama team. >> par for the course for the most transparent ever.n the morr drone was fired at by these two iranian jets and it doesn't come out until after the election 6789 yes it stinks in here. but that has been the obama way. they accused the republicans incessantly of voter suppression but these people have been responsible for massive collective systemic truth suppression. it is not just the white house that has to answer for this but the lap dogs in the media, i would like to know were there

any outlets informed of this and co told to keep it quiet, the same way we know many journalists were apprised of benghazi and kept quiet about it to serve this campaign's needs before the election? again, people's blood should be boiling. >> asked whether the incident was an act of war the pentagon spokesman said he would not legally label it. before you leave the house this morning let's get the first degree weather update for janice dean. what's it looking like for the weekend? >> the eastern half of the country looks quiet. the northeast is quiet. we are going to warm up. man, that is great news, isn't it? we don't have any storms on the horizon for the foreseeable future. that is our nor' easter moving up and towards new england and eastern canada gone. good riddens, right? the west it's your turn to get active weather and it will be quite a winter storm. we have winter weather advisories posted for many

states including blizzard warnings for montana. some of the energy will push into the central u.s. this weekend. we could see hail, winds even tornadoes if you live anywhere from northern texas to oklahoma all of the way up to minnesota for tomorrow. the threat extends into sunday for parts of oklahoma. the threat for tornadoes. the quick look at the travel forecast quiet across boston, new york and memphis. no problems if you are picking someone up. further across the u.s. taking a look at other hubs for you. philadelphia, atlantis, chicago looking good. portland could have moderate delays because of the storm system across the west. the good take away message the northeast gets a little bit of quiet weather. >> hopefully you get a little electricity this weekend.

>> i know. >> thanks ladies. have a good weekend. >> you, too. >> the khost of dancing with the stars brook birk reveals she has thyroid cancer. they are posting this video on youtube. >> doctors say it's a good cancer to have, a good cancer. sounds crazy. but my doctor told me it is a happily ever ending kind of thing. >> the cancer was spotted duringed a routine checkup. she will need surgery. exciting news for kenny chesney fans. he has announced tour dates for no shoes tour. he is pairing up with zach brown bag and eric church for several of the dates. james bond verses abraham lincoln this weekend. the new bond flick sky fall and lincoln both premiering at the box office.

it is the 23rd 007 movie. it opens nationwide november 16th. it is time now for your starting lineup. top sports stories this morning. we start with thursday night football. the colts moving 6-3. andrew luck ran for two scores last night against jacksonville beating the jaguars 20-10. they are suspending thomas robinson two games for this brutal el go. it happened in the fourth quarter of the game against the detroit i pistons. no word if any fines will be charged on robinson. the nhl and player's union ending the current lookout. they were reported by the players on wednesday. the two sides will meet again today. we will keep you posted. 39 after the hour. coming up a dire warning from the cbo about the fiscal cliff. if congress can't reach a deal

thousands of people could be losing their job. diane macedo is here to explain that next. one city council race ends in a tie. you will never believe who didn't vote. one political hopeful may be calling a familiar plighting. [ male announcer ] when it comes to the financial obstacles

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your bad back, call now. call the number on your screen for your free information kit with dvd brochure and price list. call now and we'll include a free $50 savings card. call now for your free information and this free $50 savings card. call now! >> 43 after the hour. let's span the globe to see what headlines are taking overseas. nuclear missiles on the submarine that's according to a u.s. china review commission. these missiles have a 146 mile range. the vatican city. pope will start twitter. he will start tweets before the end of the year. he is going to tweet from the

vatican account last year. as the deadline looms for the fiscal cliff the budget office issuing a frightening prediction on how high unemployment would go if nothing gets done. >> diane macedo has the numbers for us. >> good morning patti ann. if it goes below 13,000 in the three months fiscal cliff tax increases and spending cuts go into effect at the start of the year. it will send the economy back into recession and cause the unemployment rate to hit 9.1 percent by next fall. on the upside they expect the changes to cut the federal deficit by 503 billion by next september. but the economy will shrink by .5 percent next year. this comes as president obama and congress look for ways to avoid the fiscal cliff or cushion the blow. the new study estimates

extending the busheir raw tax cuts which carry heavy weight politically could bost 330 billion by the end of the budget year. also boost gross domestic product 2.2 percent next year. several issues goes along the line. one thing the market hates is uncertainty. dropped wednesday and had another triple dig get last thursday. this is one we will be watching closely and this will have a direct impact on any one who lives and pays taxes in this country. we will keep you updated. >> fox business network, thanks. hundreds of thousands of people are still recovering from the extreme storms that devastated the east coast recently. today teams of paramedics and national guard members will be going door to door in brooklyn and queens new york to provide medical care for those who need it. >> many people are struggling to fill up gas tanks and get gas for their generators forcing new

york to start the gasoline rationing. antoine lewis is live in queens with more on how new york is trying to fight thoelz long lines at the pump. good morning, antoine. >> they are still long. take a look at where we are. we are going to show you our live remote feed at 39th street in queens. all of the cars you are seeing not going any place it extends all of the way back. we are talking a couple of dozen. there is relief on the way because the gas station behind me is in fact open. the truck just came and dropped off the fuel. let me explain to you how this rationing is going to work. what the city of new york has done here in the city as well as long island they are doing the same thing. if you have a license plate that ends in an odd number you can get gas however much you need on odd days like today. even number if the last number of your license plate ends in an even number you go on an even day. they are trying to alleviate the pressure reduce the long lines and help new yorkers get going.

that's exactly what they are trying to do. everything has been smooth here so far. thanks so much antoine. it has been harder to get a cab in new york city. most can't find gasoline. >> everything is harder. 13 minutes to the top of the hour. still ahead they risk their lives around the world to protect our freedom. how do we help our veterans transition when they come to successful -- when they want to find a successful roy rear. career. >> one race ends in a tie. you are not going to believe who didn't vote. one political hopeful will be having a chat with family members. let's check in with brian kilmeade to see what is coming up. >> i hope this is a surprise. i am going to tell you what is coming up in the next 3 hours. on "fox & friends" coming your way in 13 minutes we are following the missile fire that happened on the u.s. drone. why are we finding out about it now? ralph peters is here live to weigh fwh.

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>> 51 after the hour. city council race is tied. it's ail because the candidate's wife of one of the candidates did not vote. robert mcdonald says his wife works nights at the hospital goes to nursing school and takes care of their three kids. he was supposed to wake her up for a nap but decided to let her sleep. now the race will be decided by a coin toss. how would you like a flight for only a dollar 50. here's the catch. you have to stand. the airline ryanair is considering removing the last 10

crows of street to create a standing room only section. seat belts on planes don't really matter. passengers can hold on to a handle. ainsley? >> thanks patty ann. tomorrow -- patti ann. sunday is veteran's day. we are doing our part to help veterans coming home from the war. they all face new challenges such as finding a job. while the national unemployment rate is 7.9 percent, the unemployment rate for 9-11 era veterans is a staggering 10 percent. what can cbe done to help veterans have a successful career or own their own businesses? let's ask chaplain leo escobar he is president of s core incorporated a company that provide affordable housing fore veterans and author of rich soldiers. sounds like you have it all figured out, lee. what are your recommendations for our veterans? >> one of the biggest things that i would tell them is realize, number one, that your core values and your skills as a

military member will translate better into the business world financially than it will translate into the work force. we have certain skills -- >> you suggested the 'osoldiers evolve when they come back to the u.s. what do you mean by that? >> well, first of all we have to understand times are different. things are different and moving from the military world into the civilian world is going to be a whole different lifestyle. they are going to have to be willing to evolve which means to change. once they evolve they need to educate themselves on what they don't know and put it into practice and execute what they just learned. >> know your skills and be confident. >> you got it. we have the most military in the world. our skills and our values actually translate better into the civilian world as business owners than they do as into the work force. when we can take those skills and those values and actually translate them into the business world they will see amazing

results right now. that's one thing we are not taught in the military is that you can become a business owner. we are taught that number one you have to have a job go out get a job or go to school. but our skills translate a whole lot better. as soon as they understand it it goes to a different level especially financially. we have to make sure we are taken care of financially. >> you talked about evolve, educate and execute. you lab grateat brated on the - elaborated oh on evolve now education. >> we are talking academic education. when they get into the real world we need finances. we need to be okay financially. that's an area lacking in our school system and in the military also. what i am proposing in my book "rich soldier" number won the awareness you can become a business owner and be financially educated. after that i give them the core principles of what they need that i have seen in my own businesses to be successful in my investment to actually pass

those on. i call those the wealth ethics the principles foundational principles that will help take them to another level financially. that way success will pursue them as they are pursuing it. >> if i owned a business these are the first guys i would hire because they are so disciplined and they fought wars and they have fought for our country. they are special individuals. >> yeah, i agree 100 percent. we have fought for to defend our values and our country to protect our freedoms, and i really believe and know that we have skills that we are taught leadership, taught also resilience. those entire values actually translate again into the business world and into the work force and we need to take care of our military members, and it's a shame we come back after defending and we can't even find a job. >> you are taking care of many of them today giving them this great advice. lee escobar we thank you so much for serving our country. we are proud of you. have a great weekend. >> that you are.

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a look now at the good, bad and ugly. first the good. the baboon adopting a stray kitten in israel. next the bad, a bear takes over arcadia, california . he was spotted wandering through the neighborhood. and a brazen thief breaks in a colorado pet store. the pet store wants the puppies returned safety. it is time to get scrambled up. steve doocy is here. you know the word. >>